Mr Junichiro Ikeda, MOL CEO, said in an official statement that he sees few prospects for recovery with the Chinese economy slowing down and markets stuck at historically low levels for both containerships and dry bulkers. In his message for the new year, he referred to company’s progress, outlined the challenges and highlighted that innovation is the key.
We need “resilience and flexibility”
”Our business climate remains severe. Fleet oversupply is still an issue, and we see few prospects for recovery with the Chinese economy slowing down and markets stuck at historically low levels for both containerships and dry bulkers. The drop in crude oil prices does provide a tailwind with the twin benefits of reducing bunker costs and spurring the tanker market. However, low crude prices also raise concerns of a slowdown in resource development, which could negatively impact our new LNG carrier and offshore business projects. In addition, we cannot realistically expect favorable conditions will go on forever in the tanker market.” he said.
”We must not be content to rely on methods that worked in the past. I said this upon becoming CEO last June because past experience does not guarantee our future success. You have heard much about making the MOL Group “an excellent and resilient organization,” and that is exactly what we need to do. For every division, this is the time to make full use of your business intelligence. You need to collect information through your own personal networks and old-fashioned legwork, build a hypothesis, set benchmarks, talk with everyone involved, develop a strategy with a sense of urgency, then make quick decisions and get right to work carrying out your strategy. But you have to remember that you cannot adapt to a changing business environment if you are locked into your division’s previous mission and mindset. You have to look at things afresh from the viewpoint of MOL’s cross-divisional framework. Instead of focusing solely on your division’s interests, the greater imperative is contributing to our group-wide success.”
Innovation to meet the challenge of change
MOL CEO referred to the innovations that the company has launched so far.
”We launched the midterm management plan STEER FOR 2020 in April 2014, setting our course toward 2020. Since then, we have stepped up investment in our LNG carrier and offshore businesses where we can expect high growth and long-term stable profits. We are already seeing the results of efforts to transform our business portfolio and business model, two of the three innovative changes outlined in the plan.”
”Our containership and dry bulkship operations continue to be battered by difficult market conditions, but ocean shipping companies are used to weathering rough seas. Despite the storm, we must never lose sight of customer needs. In this same business climate, shipping companies all over the world are fighting for their very survival. Instead of letting the market define us or limit our success, we are moving aggressively to make the most of our competitive advantages. I want to make 2016 a year of innovative change as we write a new chapter in MOL Group history.”
Source: MOL
